In an exclusive conversation with India Today Global, Lord Karan Bilimoria shares his insights on UK-India relations under Prime Minister Keir Starmer’s leadership, the long-awaited free trade agreement, and concerns over Khalistani activities in Britain. He also discusses Europe’s vulnerability amid the Russia-Ukraine war, NATO’s evolving role, and the impact of Donald Trump’s policies. Offering a deep dive into global geopolitics, Bilimoria emphasises the UK’s strategic position and India’s rising influence, calling for stronger economic and diplomatic ties between the two nations.
Question: The fact that you’re here and there is so much happening in terms of global tectonic shifts after Trump has taken over the United States of America, there’s a new administration with Keir Starmer in the United Kingdom. Let’s first begin with your country. How do you see UK-India relations going forward with Keir Starmer at the helm of affairs?
Lord Karan Bilimoria: Prime Minister Keir Starmer is very, very serious about the relationship between the UK and India, and of course, we now have the free trade agreement, which we started negotiating three years ago when I was president of the Confederation of British Industry. It still hasn’t been completed after over 14 rounds of negotiations. So we’re now saying, please, please, let usthe sixth-largest economies in the worldsign this free trade agreement, which will be to the mutual benefit of both our countries for business, trade, and investment. The good thing about it is, let’s do it because otherwise, the best will become the enemy of the good. You will never get a perfect scenario. Let’s create something that is going to work for both countries and turbocharge trade between us because, as things stand, India is the 12th largest trading partner of the UK. It should be one of the top trading partners with the UK, and that will happen after the free trade agreement. I’m very confident of that, and I’m urging Prime Minister Narendra Modi and Prime Minister Keir Starmer to get that deal done now.
Question: In terms of other concerns regarding security, one of the biggest concerns India has with regard to the United Kingdom is the Khalistanis in the UK. We have not seen much forward movement from the British government when it comes to taking action against those who work against Indian interests, vandalize Indian property, or pose a threat to diplomats or the Indian mission. How do you see the Khalistani issue given that there are ongoing investigations in other countries regarding India and Khalistanis on foreign soil?
Lord Karan Bilimoria: What happened with the attack on the Indian High Commission in London is completely unacceptable. It was not accepted by anyone, and the British government was very annoyed about it. We were all very, very seriously upset that such an incident should happen in the UK to our High Commission, and it’s totally unacceptable. What I can say is that, overall, the relationship between our countries is based on the largest diaspora in the United Kingdomnearly two million people of Indian origin. And the people you’re talking about represent a small minority. Let’s focus on the nearly two million people who are now reaching the very top in every field. We’ve had a Prime Minister of Indian origin. I was president of the Confederation of British Industry, the first ethnic minoritynot just Indian, but the first ever ethnic minoritypresident of the CBI in its history. I was the first Indian-born Chancellor of a Russell Group University, the University of Birmingham, ranked among the top 100 universities in the world. So this is the opportunity that the UK is giving to the most successful diaspora community in the country, the Indian community, and we should be proud of that. That is what should shine as an example, not just within the UK but around the world. The 30 million people of Indian origin across the globe are now reaching the very top everywhere, and the UK is a great example of that. That is what we should be looking at. The relationship between the UK and India is very serious, long-standing, and built on mutual respect. As the fifth- and sixth-largest economies in the world, our partnership is crucial.
Question: A left-leaning party is now in power in the United Kingdom. Do you think that will be an impediment to the future growth of relations between the two countries, or do you believe both nations will set aside ideology and focus on their best interests in terms of economic growth?
Lord Karan Bilimoria: Let’s look at recent history. In 1997, a Labour government came into power after many years of Conservative rule. Tony Blair and Gordon Brown led the most business-friendly government I have worked with in my business career in the UK, across different administrationsConservative, coalition with the Lib Dems, and Labour. The perception of a left-leaning Labour Party being completely aligned with unions and purely leftist ideology is outdated. The ideology of the current Labour government, when it comes to the economy, is centered around one word: growth. They want to generate growth in the economy. Now, how they generate that growth is another matter, but their intention is clear.
On the global stage, look at what has just happened. Keir Starmer has risen to the occasion, saying, “Let us bring things together, let us try and build a bridge between the United States of America and the European Union.” The UK has always held a special positionwe are a European country, but we have also been seen as a gateway to Europe, even when we were members of the European Union. And by the way, Brexit was a huge mistake; it should never have happened. But in spite of Brexit, we are still seen as a special country with a strategic position. Similarly, India is a nation with enormous respect on the global stage. The UK and India can be bridge-builders for the benefit of the world.
Question: You’ve just taken me to my next question. The UK has often been considered a gateway to Europe. Is Europe vulnerable today due to the Russia-Ukraine war and the position that the Trump administration has taken? We did see that the Starmer-Trump interaction did not go as planned. For London, it is crucial to see a strong Europe, yet that appears to be in trouble right now.
Lord Karan Bilimoria: What is very clear is what happened three years ago in February 2022 when I was president of the CBI, and Russia invaded Ukraine. Russia thought it would simply walk into Ukraine, and that the Ukrainians would lay down their arms. Instead, we have had this horrific war for three years, with Russia now controlling 20% of Ukrainian territory. It has become a war of attrition, with thousands of lives lost on both sides. Ukraine alone has 80,000 amputees. This is tragic.
This war must stop, and India has been saying that from the beginning. The UK and Europe are now saying we must remain united. NATO has been a formidable force. In 2019, on NATO’s 70th anniversary, I gave a speech in the House of Lords urging the UK to increase its defense expenditure from 2% of GDP to 3%. I was the first to say that. Now, we are talking about raising it to 2.5%, with aspirations to reach 3%. All of Europe must increase its defense spending. Donald Trump was absolutely right in his first term when he said NATO members should all spend at least 2% of GDP on defense, and they were not. Now, everyone is stepping up, and NATO is united.
Question: Do you think Europe will accept an arrangement orchestrated by Trump where Russia gains Ukrainian land and the US gains minerals?
Lord Karan Bilimoria: This negotiation is ongoing. The UK and France are the only nuclear powers in Europe, and the UK maintains an at-sea nuclear deterrent with our submarines 24/7, 365 days a year. That is a very powerful deterrent, and we have stated that it benefits all of Europe. NATO remains strong, and if any NATO country is attacked, Article 5 is invoked, meaning the entire alliance responds. It has only been invoked oncein response to 9/11 in 2001, leading to NATO’s presence in Afghanistan. NATO must remain united, and the US must remain committed to it.
Question: Do you think that commitment will last?
Lord Karan Bilimoria: It should, because in the long term, it is in America’s best interest to ensure global security, and NATO provides that security. Together, we are strong. Putin made a major mistake when he invaded Ukraine, as it led to Finland and Sweden joining NATO. They are now NATO members, and they are formidable military powers. That was a serious miscalculation by Russia.
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